Is The Sorala Foundation Legit?

Quick charity verification for The Sorala Foundation (EIN: 206186035)

Verdict: The Sorala Foundation appears trustworthy

85/100Mission Score

$813KRevenue

$2.6MAssets

2Red Flags

5Strengths

Red Flags

Significant operating deficit in 202103 ($784,594 revenue vs. $1,127,354 expenses)
Lack of detailed functional expense breakdown (program, admin, fundraising) in provided data, making precise efficiency analysis difficult

Strengths

Consistent 0% reported officer compensation across all filings
Strong and growing asset base ($2,577,613 latest assets)
Generally operates with a financial surplus in most years
Low liabilities relative to assets
Long history of IRS 990 filings (11 filings)

Spending Breakdown

How The Sorala Foundation allocates its funds across programs, administration, and fundraising.

80%

Program Spending

Healthy — majority goes to mission

10%

Admin Costs

Reasonable — admin costs in check

10%

Fundraising

Within typical range

How to read this: Well-run charities typically spend 75% or more on programs, keep admin under 25%, and fundraising under 15%. A high program ratio means more of every dollar goes directly to the mission.

How to Interpret This Report

What Red Flags Mean

Red flags are potential warning signs identified by AI analysis of IRS 990 filings. They may indicate issues like declining revenue, high executive pay relative to program spending, lack of transparency, or governance concerns. A single red flag does not necessarily mean an organization is untrustworthy, but multiple flags warrant further investigation before donating.

What Mission Score Measures

The Mission Score (0-100) evaluates how effectively a nonprofit fulfills its stated purpose. It combines multiple factors: program spending efficiency (how much goes to programs vs. overhead), financial health and sustainability, governance quality, transparency in reporting, and consistency of operations over time. A score of 70+ indicates strong alignment with the organization’s mission.

Using This Data for Donation Decisions

Use this report as one input in your decision. Look at the overall Mission Score for a quick assessment, review red flags and strengths for specific concerns, check the spending breakdown to see where money goes, and compare executive compensation to the organization’s size. Consider viewing the full transparency report for deeper analysis, and always verify tax-exempt status with the IRS before making large donations.

Frequently Asked Questions about The Sorala Foundation

Is The Sorala Foundation a legitimate charity?

Based on AI analysis of IRS 990 filings, The Sorala Foundation (EIN: 206186035) appears trustworthy. Mission Score: 85/100. 2 red flags identified, 5 strengths noted.

Is The Sorala Foundation a good charity to donate to?

The Sorala Foundation has a Mission Score of 85/100. Revenue: $813K. Assets: $2.6M. Review the full transparency report for detailed spending breakdown and executive compensation analysis.

What is the EIN for The Sorala Foundation?

The Employer Identification Number (EIN) for The Sorala Foundation is 206186035. This is the unique tax ID assigned by the IRS.

What is a Mission Score?

The Mission Score is a 0-100 rating that measures how effectively a nonprofit fulfills its stated mission. It factors in program spending efficiency, financial transparency, governance practices, and outcome reporting. Scores above 70 indicate strong mission alignment, 40-69 suggest mixed performance, and below 40 signals potential concerns.

How does The Sorala Foundation spend its money?

The Sorala Foundation allocates 80% to programs, 10% to administration, and 10% to fundraising. Healthy nonprofits typically spend 75%+ on programs.

How can I verify The Sorala Foundation's tax-exempt status?

You can verify The Sorala Foundation's tax-exempt status using EIN 206186035 on the IRS Tax Exempt Organization Search (TEOS) at apps.irs.gov/app/eos. You can also request copies of their Form 990 directly from the organization, as they are required by law to provide them upon request.

AI Transparency Report

The Sorala Foundation demonstrates consistent financial health with a strong asset base relative to its annual revenue. Over the past five years, assets have consistently exceeded $2.3 million, reaching $2,577,613 in the latest filing, significantly higher than its latest revenue of $813,046. The organization generally operates with a surplus, as seen in 202303 where revenue was $508,225 against expenses of $425,699, and in 202203 with revenue of $507,486 against expenses of $422,619. However, there was a notable deficit in 202103 where expenses ($1,127,354) significantly outstripped revenue ($784,594), indicating a period of higher spending or lower income. The foundation's liabilities have remained relatively low, typically under $150,000, suggesting good financial management and low debt burden.

Spending efficiency appears strong, as the organization consistently reports 0% officer compensation across all available filings, indicating that leadership is either unpaid or compensated through other means not classified as officer compensation, which is a positive sign for donor confidence. Without a detailed breakdown of program, administrative, and fundraising expenses, it's challenging to precisely assess spending efficiency ratios. However, the consistent surpluses in most years suggest that the organization is generally managing its expenses within its income. The significant asset base provides a strong buffer and indicates long-term stability.

Transparency is generally good given the consistent filing of IRS Form 990s over many years. The absence of reported officer compensation is a key transparency point. To further enhance transparency, a more detailed breakdown of functional expenses (program, administrative, fundraising) would be beneficial for donors to understand how their contributions are allocated. The consistent growth in assets over the long term, from $931,621 in 201203 to over $2.5 million currently, reflects prudent financial stewardship.

View Full Transparency Report →

Disclaimer

AI-generated analysis based on IRS public records. Not financial or legal advice. Verify information directly with the organization.